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REAL ESTATE [REGULATION AND

DEVELOPMENT] ACT 2016

By:-Nadeem
Indrajith
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016

Meaning:-
The Real Estate (Regulation and Development)
Act, 2016 is an Act of the Parliament of
India which aims to protect home-buyers and
encourage genuine private players in the fast
growing sector as well as help boost
investments in the real estate industry
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
When was the bill proposed?
The RERA bill was
 Drafted in the year 2013, Was passed
by the Rajya Sabha on 10th March
2016.

 By the Lok Sabha on 15th March
2016. It received the Presidential
nod on March 25th 2016.

 Came into force on 1st May 2016
with 69 of 92 sections notified.

 Effective from 1st May 2017
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016

All sections of the RERA Act came into
force with effect from May 1, 2017.
Under the RERA Act, the Karnataka Real
Estate Regulation and Development
Rules, 2017 was approved by
Government of Karnataka and notified on
July 10, 2017
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Real Estate (Regulation and Development)
Act (RERA), 2016?

 An initiative by Indian government
 To enhance transparency in the real estate
related transactions by creating a
systematic and a uniform regulatory
environment,
 Thereby protecting consumers’ interest and
 Making real estate developers liable for
timely completion of projects.

RERA – AWARENESS
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
OBJECTIVES of RERA, 2016?
Five Major Objectives of RERA, 2016 are
 To Establish the (RERA)
 To Promote Transparency And Efficiency In The Sale of
Real Estate Projects or
 To Protect the interest of Consumers in the real estate
sector
 To Establish An Adjudging Mechanism
for speedy dispute settlement
 To Set-up an Appellate Tribunal to hear appeals from the
decisions, directions or orders of the RERA and
adjudicating officers
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Salient feature of RERA, 2016:
Major Salient feature of RERA, 2016 are
•Establishment of Real Estate Regulatory Authority.

•Registration of Real Estate Projects and Registration of Real
Estate Agents.

• Mandatory Public Disclosure of all project details.

• Functions of Real Estate Agents.

• Fast Track Dispute Settlement Mechanism.
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016

Is RERA act, 2016 applicable to
all Indian States?

• Yes, applicable to all Indian
states Excluding Jammu &
Kashmir.
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
The key terms that have been defined in the
RERA Act?
A number of key terms have been defined. Some of
them are:
 Advertisement, Agreement for Sale,
Allottee, Apartment, Architect, Building,
Carpet Area, Commencement Certificate,
Common Areas, Completion Certificate,
Development, Development Works,
Engineer, Estimated Cost of Real Estate
Project, External Development Works,
Family, Garage, Immovable Property,
Interest, Internal Development Works,
Local Authority, Occupancy Certificate,
Person, planning area, Project, Promoter,
Prospectus, Real Estate Agent, Real Estate
Project, Sanctioned Plan
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
The Act applicable to both residential and commercial projects?
• Initially, the bill was supposed to cover only residential projects. On
further amendments, commercial projects including shops, offices
and buildings were also included.
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Supporting Government bodies set up
to assist the RERA:-

• Yes, A Central Advisory council will be
set up to advice the Central Government
on the implications of the Act to
recommend policies in order to protect
consumers’ interest and to supervise the
growth & development of the real estate
sector. In addition, there will be a
dedicated Appellate Tribunal set up for
RERAs to hear appeals from orders of the
RERAs and the adjudicating officer
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Is Prior Registration of Real Estate
Project with Real Estate Regulatory
Authority mandatory?
 Yes, Mandatory –
 No developer or builder shall advertise,
market, book, sell or offer for sale, or
invite persons to purchase any plot,
apartment or building, in any real estate
project or part of it, in any planning area,
without registering Real Estate Project
(REP) with Real Estate Regulatory
Authority (RERA).
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Situations in which Registration of Real
Estate Project is not required?
There are three situations:
 Where area of land proposed to be developed does
not exceed 500 sq m or number of apartments
proposed to be developed does not exceed 8
inclusive of all phases
 Where promoter has received completion certificate
for Real Estate Project prior to commencement of
Act
 For purpose of renovation or repair or re-
development which does not involve marketing,
advertising, selling or new allotment of any
apartment, plot or building, under real estate project
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
How does a promoter make an application – manual or electronic
form?
It is stated that RERA shall operationalise
 a web based online system for submitting applications for
registration of projects within a period of 1 year from date of its
establishment.
 RERA is yet to be established. Until a web based online system
is established, all applications shall be made in paper format.
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Roles and responsibilities of a real estate
developer as stated in the Act?
In order to escalate the responsibility and
accountability of real estate developers
towards consumers, made compulsory or
Mandatory for the real estate developer
 To register the project with the RERA and
obtain a valid registration number before
proceeding
 Any kind of marketing, advertising or selling
of units is strictly prohibited before the
registration of the project
 To submit all documents related to the project
which is considered necessary by the RERA
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016
Roles And Responsibilities of a Real Estate
Developer as stated in the Act?- Continued.,
 The real estate developer must deposit 70% of the
payment received from the consumers in an escrow
account and ensure that the amount is solely used for
the development of the project for which it was taken
 Must adhere to the project plan at all times
 Refund the money taken from the consumers with an
applicable interest in case the project cannot be
completed.
 Compensate the consumer for the time delay if any
 To repair any structural defects in the construction
even after 5 years of handover of the project

©DR.C.S. RAMANIGOPAL RERA – AWARENESS PROGRAM-I/17 M2K17 MAY 26
REAL ESTATE [REGULATION AND
DEVELOPMENT] ACT 2016